Dollar extends gains; euro, pound hit fresh intraday lows

Dollar extends gains; euro, pound hit fresh intraday lows

The U.S. dollar continued to strengthen on July 2, 2025, as the euro and pound sterling reached fresh intraday lows against the greenback. The dollar's resilience can be attributed to several factors, including ongoing geopolitical tensions and a dovish shift in monetary policy from the Federal Reserve.

According to Investing.com [1], the U.S. dollar traded largely unchanged on Tuesday but gained ground later in the day as U.S. President Donald Trump announced new economic measures. This move, coupled with the Federal Reserve's recent dovish tilt, has bolstered investor confidence in the dollar.

In contrast, the euro faced downward pressure due to ongoing political uncertainties in France, as reported by ExchangeRates.org.uk [2]. The euro's struggles were exacerbated by the release of weaker-than-expected economic data, which further undermined its value.

The pound sterling also experienced a decline, with the GBP/USD exchange rate edging higher despite stronger-than-expected UK purchasing managers' index (PMI) data. This discrepancy can be attributed to broader market sentiment and the Bank of England's anticipated rate cuts in the coming months, as highlighted by PoundSterlingLIVE [3].

Looking ahead, the dollar's performance is expected to be influenced by upcoming economic data releases and the Federal Reserve's monetary policy decisions. The euro and pound sterling, on the other hand, may continue to face downward pressure due to persistent geopolitical risks and slower economic growth.

References:

[1] https://uk.investing.com/news/forex-news
[2] https://www.exchangerates.org.uk/
[3] https://uk.investing.com/news/forex-news